Update: White House Announces Tariffs of 5% - 25% on Imports from Mexico - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
On May 30, 2019, President Trump announced that effective June 10, 2019, all goods imported into the U.S. from Mexico will be subject to an additional duty of 5% ad valorem. This is in addition to the regular duties which are normally applicable to the goods. The President invoked his authority under the International Emergency Economic Powers Act to impose the tariff, stating that the measure was necessary to address the “illegal migration crisis” at the U.S. southern border. President Trump stated that if the Mexican government takes effective actions to address the issue, the tariffs will be removed. However, if the Administration is not satisfied with the efforts taken by the Mexican government and the migration issue persists, the tariffs will increase incrementally by 5% on the first of each month, beginning on July 1, 2019 and ending on October 1, 2019, when 25% is reached. Thereafter, the tariffs will remain at 25% until Mexico “substantially” addresses the migration issue. The official statement is accessible here:
https://www.whitehouse.gov/briefings-statements/statement-president-regarding-emergency-measures-address-border-crisis/
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Treasury and Commerce Implement Changes to Cuba Sanctions Rules - US. International Trade Commission
WASHINGTON – Today (6/4/19), the Department of the Treasury’s Office of Foreign Assets Control (OFAC) unveiled amendments to the Cuban Assets Control Regulations (CACR) to further implement the President’s foreign policy on Cuba. These amendments complement changes to the Department of Commerce’s Bureau of Industry and Security (BIS) Export Administration Regulations (EAR), which Commerce is also unveiling today. These regulatory changes were announced on April 17, 2019 and include restrictions on non-family travel to Cuba.
“Cuba continues to play a destabilizing role in the Western Hemisphere, providing a communist foothold in the region and propping up U.S. adversaries in places like Venezuela and Nicaragua by fomenting instability, undermining the rule of law, and suppressing democratic processes,” said Treasury Secretary Steven Mnuchin. “This Administration has made a strategic decision to reverse the loosening of sanctions and other restrictions on the Cuban regime. These actions will help to keep U.S. dollars out of the hands of Cuban military, intelligence, and security services.”
These actions mark a continued commitment towards implementing the National Security Presidential Memorandum signed by the President on June 16, 2017 titled “Strengthening the Policy of the United States Toward Cuba.” These policies continue to work to channel economic activities away from the Cuban military, intelligence, and security services. The Treasury changes will take effect on June 5, 2019 when the regulations are published in the Federal Register.
For the Treasury regulations, which can be found at 31 Code of Federal Regulations (CFR) part 515, see here. For the Commerce regulations, which can be found at 15 CFR parts 730-774, see here. Major elements of the changes in the revised regulations include:
Ending Group People-to-People Travel
- In accordance with the newly announced changes to non-family travel to Cuba, OFAC is amending the regulations to remove the authorization for group people-to-people educational travel. OFAC’s regulatory changes include a “grandfathering” provision, which provides that certain group people-to-people educational travel that previously was authorized will continue to be authorized where the traveler had already completed at least one travel-related transaction (such as purchasing a flight or reserving accommodation) prior to June 5, 2019. Please note that travel-related transactions continue to be permitted by general licenses for certain categories of travel and certain authorized export transactions. For more on authorized travel to Cuba, please click here.
Ending Exports of Passenger Vessels, Recreational Vessels, and Private Aircraft
WASHINGTON – Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) unveiled amendments to the Cuban Assets Control Regulations (CACR) to further implement the President’s foreign policy on Cuba. These amendments complement changes to the Department of Commerce’s Bureau of Industry and Security (BIS) Export Administration Regulations (EAR), which Commerce is also unveiling today. These regulatory changes were announced on April 17, 2019, and include restrictions on non-family travel to Cuba.
“Cuba remains communist, and the United States, under the previous administration, made too many concessions to one of our historically most aggressive adversaries,” said Commerce Secretary Wilbur Ross. “The Trump Administration recognizes the threat Cuba’s government poses in the region, and the Commerce Department is acting to limit commercial activity that provides revenue for the Cuban regime. Holding other countries accountable remains a focus for this Administration and we will remain vigilant.”
These actions mark a continued commitment towards implementing the National Security Presidential Memorandum signed by the President on June 16, 2017 titled “Strengthening the Policy of the United States Toward Cuba.” These policies continue to work to channel economic activities away from the Cuban military, intelligence, and security services. The Treasury changes will take effect on June 5, 2019 when the regulations are published in the Federal Register.
For the Treasury regulations, which can be found at 31 Code of Federal Regulations (CFR) part 515, see here. For the Commerce regulations, which can be found at 15 CFR parts 730-774, see here. Major elements of the changes in the revised regulations include:
Ending Group People-to-People Travel
In accordance with the newly announced changes to non-family travel to Cuba, OFAC is amending the regulations to remove the authorization for group people-to-people educational travel. OFAC’s regulatory changes include a “grandfathering” provision, which provides that certain group people-to-people educational travel that previously was authorized will continue to be authorized where the traveler had already completed at least one travel-related transaction (such as purchasing a flight or reserving accommodation) prior to June 4, 2019.
Ending Exports of Passenger Vessels, Recreational Vessels, and Private Aircraft
BIS, in coordination with OFAC, is amending its EAR to make passenger and recreational vessels and private and corporate aircraft ineligible for license exception and to establish a general policy of denial for license applications involving those vessels and aircraft.
Department of Commerce Releases Report on Critical Minerals - U.S. Department of Commerce
WASHINGTON – Today, the U.S. Department of Commerce released the interagency report that was submitted to the President pursuant to Executive Order 13817, A Federal Strategy to Ensure Secure and Reliable Supplies of Critical Minerals. The report contains a government-wide action plan, including recommendations to advance research and development efforts, increase domestic activity across the supply chain, streamline permitting, and grow the American critical minerals workforce.
“These critical minerals are often overlooked but modern life without them would be impossible,” said Secretary of Commerce Wilbur Ross. “Through the recommendations detailed in this report, the Federal government will take unprecedented action to ensure that the United States will not be cut off from these vital materials.”
This release follows a previous report from the Department of Interior, also required by the executive order, which designated 35 mineral commodities considered critical to the economic and national security of the United States, including uranium, titanium, and rare earth elements.
These critical minerals are necessary components for countless items relied on by millions of Americans, including smartphones, aircraft, computers, and GPS navigation systems, as well as green technologies such as wind turbines, energy efficient lighting, and hybrid vehicle batteries.
President Donald J. Trump issued Executive Order 13817 to reduce vulnerabilities from our nation’s reliance on foreign sources of critical minerals and on foreign supply chains. Currently, the United States is heavily dependent on imports of critical minerals, with the U.S. dependent on imports for more than 50 percent of domestic demand for 29 of the 35 minerals named in Interior’s report. In addition, the United States lacks any domestic production for 14 of the 35 minerals and does not have domestic access to processing and manufacturing capabilities for many of these minerals.
This action plan complements other initiatives of the Trump Administration, including the Department of Defense’s response to Executive Order 13806, Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States and the National Science and Technology Council’s Strategy for American Leadership in Advanced Manufacturing and Charting a Course for Success: America's Strategy for STEM Education.
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Confused by Date Labels on Packaged Foods? - FDA
Between the food industry and consumers, Americans are throwing out about a third of our food — about $161 billion worth each year.
“Imagine this: You go to your favorite supermarket and come out with three bags full of groceries. Before you get in your car, you toss one of those bags in the garbage. Sound ridiculous? Of course it does, but that’s in essence what food waste looks like every day across our country,” says Frank Yiannas, the FDA’s Deputy Commissioner for Food Policy and Response.
Consumer uncertainty about the meaning of the dates that appear on the labels of packaged foods is believed to contribute to about 20 percent of food waste in the home. That’s not surprising when you consider the variety of terms used with date labels, such as “use before,” “sell by,” “expires on,” and many more.
To help dispel this confusion, the FDA is supporting the food industry’s efforts to standardize the use of the term “Best if Used By” on its packaged-food labeling if the date is simply related to optimal quality — not safety. Studies have shown that this best conveys to consumers that these products do not have to be discarded after the date if they are stored properly. “We expect that over time, the number of various date labels will be reduced as industry aligns on this ‘Best if Used By’ terminology,” says Yiannas. “This change is already being adopted by many food producers.”
The FDA’s efforts are part of a White House initiative called Winning on Reducing Food Waste. And part of this collaboration between the FDA, the Environmental Protection Agency and the U.S. Department of Agriculture involves educating consumers on ways to reduce food loss and waste, and how to do it safely without risking illness from consuming spoiled food.
Most Date Labels Are Not Based on Exact Science
Manufacturers generally apply date labels at their own discretion and for a variety of reasons. The most common is to inform consumers and retailers of the date up to which they can expect the food to retain its desired quality and flavor. The key exception to this general rule is for infant formula products. These products are required to bear a “Use By” date, up to which the manufacturer has confirmed that the product contains no less than a minimum amount of each nutrient identified on the product label, and that the product will be of an acceptable quality.
Date labels are generally not required on packaged foods. While manufacturers are prohibited from placing false or misleading information on a label, they are not required to obtain agency approval of the voluntary quality-based date labels they use or specify how they arrived at the date they’ve applied.
According to Kevin Smith, Senior Advisor for Food Safety in the FDA’s Center for Food Safety and Applied Nutrition, the “Best if Used By” labels you see on packaged foods relate to the quality of the product, but that predicting when a food will no longer be of adequate quality for consumption is not an exact science.
Smith advises consumers to routinely examine foods in their kitchen cabinets or pantry that are past their “Best if Used By” date to determine if the quality is sufficient for use. If the products have changed noticeably in color, consistency or texture, consumers may want to avoid eating them.
Additionally, there are resources available online for consumers with questions about how long to keep perishable foods, including meat, seafood and dairy products:
The FoodKeeper App, designed to promote understanding of food and beverage storage to maximize freshness and quality.
The Refrigerator and Freezer Storage Chart on page 4 of the FDA’s Food Facts brochure, providing more information about which products to refrigerate or freeze, and for how long.
Waste Not: Advice on How to Reduce Food Waste
The FDA is working with federal partners and other stakeholders to help consumers better understand the variety of actions they can take to reduce food waste. The FDA’s Food Waste and Loss page links to resources from the FDA, EPA and USDA.
Other ways to reduce waste include:
Refrigerate peeled or cut vegetables for freshness, quality and safety.
Use the freezer as your friend. It’s a great way to store many foods to retain their quality until you are ready to eat them.
Avoid bulk and impulse purchases, especially of produce and dairy products that have a limited shelf life.
When eating out, if you’re not terribly hungry, request smaller portions. Bring your leftovers home, and refrigerate or freeze them within two hours.
For more tips, visit the FDA’s Tips to Avoid Food Waste page.
“Reducing food waste is a shared responsibility, and consumers have an especially important role to play,” says Yiannas. “The FDA is committed to providing the information they need to make safe and sound decisions for their family. Food is too important to waste.”
Hurricane Season Begins June 1 - Federal Trade Commission
Tips from the FTC on how to prepare for, deal with, and recover from weather emergencies